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Protecting your income

© Copyright LexisNexis 2024. All rights reserved.

31 October 2007 / Penny Bates

Issue: 4132 / Categories: Comment & Analysis

Tax relief for income protection policies and the taxation of receipts can be confusing. PENNY BATES provides a brief explanation

KEY POINTS

What is IPI and how does it work?
What level of cover is required?
Tax consequences for the self employed.
Three different employer/employee scenarios.

Before looking at the tax position in respect of premiums and receipts from income protection insurance policies (IPI) (previously known as permanent health insurance) it would be useful to look at why people take this cover. What is the state of health of the nation that may influence a purchasing decision? According to the Department for Work and Pensions in 2005 one in five adults in Great Britain had a disability or long-term health problem. More than 2.7 million people of working age had been away from work and claiming benefits and 74% of their number had been claiming benefit for more than two years and astonishingly 35% had...

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Protecting your income

© Copyright LexisNexis 2024. All rights reserved.

31 October 2007 / Penny Bates

Tax relief for income protection policies and the taxation of receipts can be confusing. PENNY BATES provides a brief explanation

KEY POINTS

What is IPI and how does it work?
What level of cover is required?
Tax consequences for the self employed.
Three different employer/employee scenarios.

Before looking at the tax position in respect of premiums and receipts from income protection insurance policies (IPI) (previously known as permanent health insurance) it would be useful to look at why people take this cover. What is the state of health of the nation that may influence a purchasing decision? According to the Department for Work and Pensions in 2005 one in five adults in Great Britain had a disability or long-term health problem. More than 2.7 million people of working age had been away from work and claiming benefits and 74% of their number had been claiming benefit for more than two years and astonishingly 35% had...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

Issue:

4132

Categories: Comment & Analysis [1]

SourceURL:

Links:

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Readers forum: Claiming pre-registration input tax Practice tip: 19 December 2024 New Queries: 19 December 2024 Readers’ forum: Should I advise my client to declare income? Readers’ forum: Pension scheme set up as discretionary trust?

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NEWS

Automated tracking system for taxpayers could save £36m a year, study shows Welsh income tax rates are unchanged Business expenditure on R&D rises in 2023 HMRC targets landlords who may have undeclared rents Lump sums cannot be returned to pension scheme

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Deadline dates for January 2025

CASES

No extenuating circumstances to extend deadline Delay in issuing penalties was no excuse for late return Sales of occupation income avoidance rules apply Whole of settlement was not subject to tax Payments were taxable as earnings

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Readers forum: Claiming pre-registration input tax No extenuating circumstances to extend deadline This week's opinion: 19 December 2024 Automated tracking system for taxpayers could save £36m a year, study shows Welsh income tax rates are unchanged

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